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BUS 211 INTRODUCTION To MANAGEMENT - Study Session 6 - Organising Function of Management
BUS 211 INTRODUCTION To MANAGEMENT - Study Session 6 - Organising Function of Management
BUS211INTRODUCTIONTOMANAGEMENT:StudySession6:OrganisingFunctionofManagement
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BUS211 INTRODUCTION TO
MANAGEMENT
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INTRODUCTION TO MANAGEMENT
BUS211
Introduction
You would recall that the word Organising had earlier been introduced to you in Study Session One of
Module One as one of the functions of management. You also learnt from the previous session that
before you carry out any business activity you must plan. After planning then comes organisation. This
session will teach you how to organise your business or your organisation. All these will be useful when
you want to find out how well you have done and that will be covered in Session Three of this module.
BUS 211
TABLEOFCONTENTS
1 Study Session 1: Meaning
and Significance of
Management
2 Study Session 2:
Development of
Management Thoughts (Part
One)
3 Study Session 3:
Development of
Management Thoughts (Part
Two)
4 Study Session 4:
Management Levels, Skills,
Responsibilities and Their
Relationships
5 Study Session 5: Planning
Functions of Management
6 Study Session 6:
Organising Function of
Management
7 Study Session7: Influencing
(Authority, Responsibility
and Accountability)
8 Study Session 8: Managerial
Decision Making
9 Study Session 9: Control
Functions of Management
10 Study Session 10:
Motivation and Human
Behaviour (Part one)
11 Study Session 11:
Motivation and Human
Behaviour (Part two)
Organisation can be defined as a social entity or as a process. As a social entity, organising is the
interaction of people in an organisation in a way to achieve a specific goal.
Organising is the grouping of people around a technology which is operated in order to convert inputs of
the environment into required goods and services for the society.
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procedures.
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As a process, organising involves the systematic way of establishing relationships among people, position
and physical factors in order to direct efforts towards common goals.
Structure or organisation structure is the orderly arrangement showing the authority and responsibility
relationship among people and positions. It also shows the formal communication channels.
An establishment is said to be unorganised when certain elements are lacking. What do you think
those elements are?
Organising as you were taught, is the systematic process of establishing relationships among
workers, the positions they occupy and the physical factors in such a way as to channel every ones
effort towards achievement of organisations goals. Some of the elements that could be lacking in
an unorganised business include the following: no division of labour, no interrelationship among
people, no communication between lower, middle and top management levels, absence of
hierarchy of authority and responsibility in the organisation.
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The size and complexity of the firm A firm with small size may go mechanistic but a complex
organisation needs to be organic to be able to achieve results.
Environment A stable environment may make mechanistic structure suitable, while a dynamic,
turbulent environment required organic designing in order to accommodate changes.
Technology The technology in use affects structuring. For a routine technology in large batch
production, mechanistic structuring is suitable while complex process technology may need less rigidity
hence organic structuring.
Values of managers The personality of the manager, his background, knowledge, education and
experience determines his use of organic or mechanistic design.
The values of subordinates Likewise the subordinates desire for independence, motivation, skill,
willingness to assume responsibility, education, experience, knowledge all affects the manner the
organisation is designed.
Your manager is given the responsibility of reorganizing your company for better productivity. He
seeks your opinion in the choice of organisation theory to apply. What would be your suggestion
and why?
There are various reasons behind any choice of organization theory that can be applied out of the
four discussed. However, contingency approach seems to be more realistic because it teaches you
to consider some important factors before deciding whether your company should be mechanistic
or organic. Contingency approach says that there is no best way to organize and that it depends
on the circumstances, hence factors such as: values of managers and supervisors, size and
complexity of the firm, the environment, existing technology, and type of strategy to be
developed.
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Merits
Ease of control
Adaptation to market and organisation needs
Rapid decision making
Informality in relationship
Demerits
Difficult in dealing with complex environment
Overload of owner/manager
Solving only short term problems
Failure to develop other managers
As the goals of organisations differ, organic functions performed by business organisation also
differ, for example, a wholesale establishment does not produce, hence production department will not
be in the structure.
Merits
Clarity in task assignment
Opportunity for specialization
It facilitates supervision of work
It enhances the provision of required skill and experience for workers.
Demerits
It narrows the scope of experience of managers
It does not facilitate effective coordination
Difficulty in determining accountability and judging performance.
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basis.
By Product: It entails establishment of division that will be responsible for design, engineering,
and manufacturing of different products. The notion is that products manufactured are different, and
therefore requires different production and marketing strategies.
Fig 6.3.4 Organisational Structure by Product
By Customer: This type of structure is for organizations with different customers with peculiar
needs and requirements.
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Process: This type of structure is according to specific production processes performed. For
example a canning factory processing cooked meat from raw beef may have different processes thus.
Equipment: This type of structure is according to equipment used. It is related to process, where
arrangements are grouped around equipment utilized, mechanic working furniture and so on.
Time: This type of structuring is for organisation working for unusually long hours and individuals are
different, performing shift work.
Mixed Structure: This is a combination of the various structures identified into one structure.
Product A
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Merits
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Demerits
Conflict of authority arising from violation of unity of command principle.
Costly
Stress on the part of subordinates.
It is a diagram showing the functions and departments in an organisation as well as how they are
related.
It reveals the following:
The
The
The
The
Vertical Charts: Pyramid with authority proceeding from top down to the lower levels.
Circular Chart: Reveals org. in form of circle with spheres within spheres, with size of each sphere
representing the comparative level of authority and responsibility.
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6.5.3 Demerits
Inflexibility Environmental changes may render it useless
Confusion as a result of bad charts
Cost the cost of developing charts may out way its benefits.
Lack of information regarding informal groups.
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SAQ 6.3 (tests Learner Outcome 6.3.)
BUS211
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